Turkish Lira Hits Record Lows On Political Turmoil

Turkey’s currency has plunged to its lowest point against the dollar for more than three decades this week.

In the short term, the lira’s fall can be laid at the feet of political turbulence following a corruption probe which has led to three ministers resigning and even rumors Prime Minister Recep Erdogan may be next to leave.

The country has confirmed its position as one of the more worrying of the ‘Fragile Five’ emerging markets causing concerns to investors.Together with the Brazilian real, Indonesian rupiah, Indian rupee and South African rand, the lira suffered a huge sell-off when it first emerged that the U.S. Federal Reserve was planning to gradually wind down its bond-buying program known as quantitative easing. Emerging markets had benefited from increased investment during the QE program.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu